CSA deductions have stopped

11366

CSA deductions have stopped

6th April 2017

IRIS Bureau Payroll, IRIS Payroll Business

An employees CSA deductions aren't being processed.

CSA Deductions are usually for a set amount each pay period. However, if your employee earns less than usual, the Protected Earnings Amount is used to ensure that the CSA Deduction does not cause their net pay to fall below a certain value.

The Deduction Amount is taken from the employee’s net Deductible Earnings as long as this would not bring the pay below the Protected Earnings Amount.

If the employee’s net Deductible Earnings are lower than usual, deducting the normal amount might mean that the employee’s pay would fall below the Protected Earnings Amount. If this happens, the full Deduction Amount is not applied – a reduced deduction might be taken or there may be no deduction at all.

In either case, the shortfall is carried forward. The next time the employee earns enough, some (or all) of the shortfall is added to the normal deduction, so the employee pays extra until the shortfall is paid.

Note: if you decide to apply the £1 admin fee, this can take the employee’s earnings below the Protected Earnings Amount.

Casual Employees:

When an employee is set to the employment status “Casual”, in order for the deduction to work correctly, open the affected employee record and, in the “Personal” tab, change the employment status drop down menu to “Normal”.

Then in the “Tax & NI” tab tick the “Irregular Payment” tick box.